Income Protection – what is so important in terms of this type of insurance?

Despite this however, many insurance policies differ in their importance in society. Insurance policies such as car insurance, home insurance, mortgage protection insurance and life insurance policies have always been considered to be the most important, with the general consensus being that you are at a greater risk of experiencing something that one of these insurance policies offers protection against.

Not to put too fine a point on it, there are many insurance policies out there that are simply not worth worrying about such as insurance when purchasing an electronic item such as an mp3 player or new digital camera. If you have home contents cover, your policy should cover individual items as well. In addition most policies have additional benefits that cover items away from the home. Travelling abroad, you can ensure you’re covered by travel insurance. This brings the question: why should there be a need for any extra insurance? Exactly the point, there isn’t one.

Insuring certain items that can be included on other policies is simply just a waste of money and it is so apparent that many individuals have their wires crossed on what should be the insurance policies to ensure they have in place. Income protection insurance is, by far one of the core policies that Britons should consider as it can ensure that your monthly income can be supported if you suddenly are unable to work due to an accident, injury and in some cases where you lose your income due to redundancies and the closure of businesses.

With so much at stake where your income is concerned, you must deliberate on how you would cover your outgoings in any event where you no longer able to earn a wage. Taking into account the core insurance needs that you most definitely should consider, there are few that protect as well as income protection insurance.

There are such policies as life insurance and critical illness insurance that offer payouts but offer one off lump sum payments as compared to income protection that can provide repeated monthly payments to cover your outgoings. Also with life cover the payout is only valid if you were to die, leaving a lump sum to a beneficiary, whereas critical illness and income protection insurance pay out to the insured.